A True Up Bill Is a Full Year of Solar Charges at Once. Here Is How PG&E, SCE and SDG&E Handle It

A true up bill is the once-a-year statement that settles twelve months of solar charges and credits in one amount. If your panels made less power than your home used over the year, the difference lands on that single bill. PG&E, SCE and SDG&E each handle the timing and the payment options differently.

The statement goes to California homes with rooftop solar on a net metering plan. Each month the utility tracks what you pulled from the grid and what your panels sent back. Those numbers roll forward for twelve billing cycles. Then the year closes and the balance comes due.

What a True Up Bill Actually Settles

The three utilities describe the same process with different names. PG&E calls the document an annual True-Up Statement. SCE calls it an annual settlement statement. SDG&E uses three names for the same twelve months: Relevant Period, True-Up and Settlement Period.

PG&E says the monthly energy charges and credits are carried forward for 12 billing cycles. After that, they are reconciled on the annual statement. If a balance is left, it shows up on the last PG&E bill of the 12-month billing cycle.

Leftover credits do not follow you into the next year. PG&E states that by law any remaining credits are reset to zero before the new cycle begins. SDG&E says unused credits are not carried to the next 12-month period. SCE says the net energy balance resets to zero at the start of each cycle.

A flat monthly plan can produce the same kind of catch-up on a regular power bill:
Why Your Budget Billing Went Up: How 6 Big Utilities Recalculate It

Why a True Up Bill Gets So High

The size of a true up bill comes from three things the utilities spell out on their own pages.

First, production and use do not line up. SDG&E says a common reason for owing a balance is a system that produces less energy than the home uses. At night the home runs on grid power because the panels make nothing.

Second, winter builds the balance. SDG&E notes that customers who pay annually may see a balance grow in the winter months. The panels take in less sunlight then, and the home leans on the grid more.

Third, the price of power changes by the hour. PG&E requires solar customers to be on a Time-of-Use rate schedule. It says the rate per kilowatt hour is higher during certain times of the day and certain times of the year.

Nobody enjoys opening one bill that carries a whole winter of electricity. It feels like a penalty even when the math is honest.

A newer fixed charge adds to the monthly side of the bill. PG&E replaced its monthly Minimum Electric Charge with a Base Services Charge starting in March 2026. PG&E puts it at approximately $24 a month and says it is about $10 more than the old minimum charge. The utility also says the charge cannot be offset by monthly generation credits, and that it is partly offset by a lower price per kilowatt hour. SDG&E states that all residential customers, including those with rooftop solar, will move to a Base Services Charge as well.

How PG&E, SCE and SDG&E Compare

The rules below come from each company page for customers on the older net metering plans. PG&E explains its version on the PG&E solar bill page. SCE covers both of its billing options on the SCE guide to the net metering bill. SDG&E lists its bill terms on the SDG&E net metering bill page.

SCE names its two choices clearly. Under the Annual Billing Option you pay set fees each month and all net energy charges once a year. Under the Monthly Billing Option you pay set fees and net energy charges in full every month.

SDG&E puts it differently. It tells customers who want to pay annually to turn off automatic payments.

The Math on a $1,020 Year

Here is a hypothetical household on annual billing. The numbers are made up to show how the balance builds. They are not averages from any utility.

The family paid only the small monthly charge all year. In month twelve the true up bill asks for $1,020 at once. Spread over twelve months, the same energy cost is $85 a month. Nothing about the total changed. Only the timing did.

Tracking the running balance is the whole game here. One simple way is a free tracker for logging each monthly solar statement next to the running balance.

Rising rates push the same balance higher for every household on the grid:
Why Your Electric Bill Keeps Going Up in 2026 (And What You Can Actually Do About It)

What to Do Before and After the Bill Arrives

1. Find your settlement date. SDG&E prints it as the True-Up Date. PG&E says the last bill of your 12-month billing cycle carries the balance.
2. Read the year-to-date line every month. SCE lists Year-to-Date Charges on the first page of the bill. PG&E shows current and year-to-date amounts under Energy Charges/Credits.
3. Divide the year-to-date amount by the months that have passed. Set that much aside each month.
4. Switch to monthly payments if the lump sum is the problem. SCE customers can opt in to the Monthly Billing Option. SDG&E customers can pay the bill in full each month.
5. Ask for a payment arrangement before the due date if the bill is already here.

The payment plans are not all the same. The SDG&E payment arrangements page lists a payment extension and a payment plan with monthly installments. It says a down payment may be required. On its 2, 3 and 12 month plans, one missed payment cancels the plan and the full amount becomes due.

The PG&E financial assistance page points to payment arrangements and payment extensions. It also says a customer with a disconnection notice may qualify for up to $800 toward a past due bill through the REACH program.

If You Are on the Newer Solar Billing Plan

Homes that went solar more recently are on a different plan, and the yearly statement works differently there. SDG&E says the bill on its Solar Billing Plan is due monthly. A true-up statement still arrives at the end of each 12-month period. According to the SDG&E solar bill guide, it carries an Annual True-Up Adjustment charge only if you exported more than you imported over the whole period.

SCE says its Solar Billing Plan customers also receive a bill each month for energy charges. The PG&E page reviewed for this article does not describe its newer plan.

Solar is not the only place where an electric account settles up long after the power was used:
Capital Credits From an Electric Co-op Can Take 30 Years to Reach You

When does your twelve-month cycle end, and do you know your year-to-date balance right now?

Disclaimer: MoneyWisePro is not a utility provider or financial advisor. This article is for general information only and is not financial or legal advice. Contact your utility for guidance on your specific situation.